Sen. Maria T. Pangelinan, D-Saipan, who chairs the committee, wrote the letter upon learning that the pension agency is retaining three private counsels who will be paid on an hourly basis.
She asked Guerrero to provide her office copies of the contracts of the lawyers.
The lawyers are supposed to go after government entities that are not paying their employer contributions.
“It would appear that the Fund is spending taxpayer money to pursue taxpayer money instead of using those funds to honor the law requiring that vested and qualified applicants receive their retirement benefits,” Pangelinan told Guerrero.
She also reminded him that under the fiscal year 2009 budget of $148 million even autonomous or independent agencies like the Fund are required to be prudent in spending money for personnel expenses.
“Please also be aware that Public Law 16-32 has restrictions on all government agencies including autonomous ones regarding new hiring. It also sets the limits for FTEs and spending to the levels the law as approved by the Legislature,” she said.
The Fund won by default its lawsuit against the central government claiming payments for more than $200 million in unpaid employer’s contributions.
The Superior Court is scheduled to make a ruling on the government’s payment terms to pay its mounting debts.
The Fund has not been allowing employees of delinquent government agencies to retire.
